888 Posts H1 Results, Reveals a Modest Growth
According to available figures, 888 recorded a 6% rise in revenue on a like-for-like basis for the period from January 1 to May 18, leaving its shareholders satisfied.
So Far So Good
Sports Betting and the 888 casino operations were cited as the main driving force behind the latest results, while other important events during this period included the migration of Cashcade Bingo from its bingo platform and the purchase of Costa Bingo and AAPN.
These moves helped the renowned gambling company to record a 2% year-on-year increase in revenue.
Other key events, that helped achieve the aforementioned result, include a rise in marketing investments. The launch of 888’s new Orbit Casino platform is a good example of that, helping the company increase its customer acquisition by 20% when compared to the same period of 2018.
Sports betting vertical recorded the biggest improvement, jumping by 29%. Casino revenue increased by 13%, poker dropped by 28%, while bingo essentially stayed the same.
The company can be more than satisfied with its result in the home market, where they generated 18% more revenue on an adjusted like-for-like basis and 8% on a reported basis. According to available information, the majority of revenue in the United Kingdom was generated by recreational customers.
In Line with FY Expectations
Commenting on the latest figures, the 888 Board said the H1 results were in line with the full year expectations.
Speaking about the company’s performance during the period, 888 Chief Executive Officer, Itai Pazner said that 888 has enjoyed a solid start to the year with strong momentum in casino and sport across a number of the Group’s major regulated markets.
Pazner added that while poker had remained challenging, the company had been pleased to see an improving revenue trend in Q1 2019 against Q4 2018.
Pazner also pointed out the number of first-time depositors had increased by 20%, which represented a reflection of the company’s outstanding marketing capabilities and “growth prospects across its B2C business.
However, a third party analysis conducted by Regulus wasn’t encouraging, as it described the company’s growth as hardly an encouraging performance for a business with global reach, calling the results a sign of an increase in market share losses.
According to Regulus, the modest rise in the UK market is not so impressive results due to the very easy competition.
This announced comes only a couple of months after 888 reported record earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the twelve-month period ending on December 31, 2018. That report also revealed a 2% year-on-year drop in revenue to $540.6 million.
As the online gaming market continues to grow, 888’s board remains confident the rest of the year will live up to the expectations. One thing is certain: if the company wants to remain one of the industry’s leader, it will have to adapt to new circumstances.